Mortgage rates are likely to remain mostly unchanged in the first half of September. After that, the direction of mortgage rates depends on what the Federal Reserve does at its two-day meeting ending Sept. 17.

If the Fed cuts short-term interest rates at the meeting, then mortgage rates should stay about the same or drop a little bit over the rest of the month. Right now, forecasters expect a cut. But if the Fed leaves short-term rates alone, then markets will be surprised and mortgage rates will probably bounce higher.

It's not great for buyers and refinancers

The 30-year fixed-rate mortgage averaged a little under 6.7% in August. Today's home shoppers find it hard to afford a home at current prices and mortgage rates . So a lot of would-be buyers sat out the spring and summer tradit

See Full Page